Frequently Asked Questions

A mutual fund pools money from many investors and invests it in shares, bonds or other securities according to a stated objective. A professional fund manager runs the portfolio, and you hold units whose value (the NAV) changes with the market value of the fund’s holdings.

Every scheme has both. A Regular Plan is bought through a distributor such as GTDIS, and its expense ratio includes the commission paid to the distributor. A Direct Plan is bought directly from the fund house and has a lower expense ratio. GTDIS offers Regular Plans only. See our commission disclosure.

You need to be KYC-compliant. That usually means:

• PAN card
• Proof of address (such as Aadhaar)
• A bank account in your name
• A photograph and signature

We help you complete KYC and registration online or at your doorstep.

No. Mutual funds are market-linked and returns are not guaranteed or assured. The value of your investment can go down as well as up, and past performance may or may not be sustained in future.

You can place a redemption request online through your investor login or with our help. Money from most equity funds reaches your bank account in two to three business days, and from most debt funds in one to two. Some schemes charge an exit load if you redeem within a set period, and ELSS funds have a three-year lock-in.

A Systematic Investment Plan (SIP) invests a fixed amount in a mutual fund scheme at regular intervals — usually monthly — directly from your bank account. It is a way of investing, not a product in itself.

Most schemes accept SIPs from ₹500 a month and some from ₹100. Try our SIP calculator to see how different amounts could add up.

Yes. You can stop a SIP at any time without penalty, and many fund houses let you pause it for a few months. To change the amount you normally start a new SIP or set up a step-up. The units you already hold stay invested.

The fund house does not charge a penalty, though your bank may charge for a failed mandate. The SIP continues the following month. If several instalments fail in a row, the fund house may cancel the SIP.

A step-up (or top-up) SIP increases your instalment automatically every year, by a fixed amount or percentage. See the effect with our step-up SIP calculator.

Yes. Non-Resident Indians can invest in most Indian mutual funds on a repatriable basis through an NRE account or on a non-repatriable basis through an NRO account, after completing KYC as an NRI.

Some fund houses do not accept investments from residents of the USA and Canada, or accept them only with additional conditions, because of compliance requirements in those countries. We can tell you which fund houses currently accept such investments.

Capital gains are taxed in India at the applicable rates, and tax is deducted at source (TDS) when you redeem. You may be able to claim relief under a Double Taxation Avoidance Agreement in your country of residence. Please consult a tax adviser.

Some products are for residents only — for example, RBI Floating Rate Savings Bonds. Rules also differ for corporate deposits. Ask us before you invest.

Yes. Funds based in GIFT City offer NRIs a foreign-currency route into Indian markets. Read more on our GIFT City investing page.

A fixed deposit placed with a company — usually an NBFC or housing finance company — rather than a bank. It pays a fixed rate of interest for a fixed tenure. Read more on our Corporate FDs page.

No. The DICGC insurance that covers bank deposits does not apply to corporate FDs. Repayment depends on the company’s financial strength, so check the credit rating and spread your deposits across issuers.

Rates change often and differ by issuer and tenure. Contact us for the latest rates before booking.

There is usually a three-month lock-in. After that, premature withdrawal is generally allowed at a reduced interest rate. Terms vary by issuer.

Yes, if the interest paid by a company in a financial year crosses the threshold set under the Income-tax Act. Eligible investors can submit Form 15G or 15H to avoid TDS.

Government securities denominated in grams of gold, issued by the RBI on behalf of the Government of India. Their value tracks the gold price and they pay 2.5% a year interest on the issue price. Read more on our Sovereign Gold Bonds page.

New tranches have not been issued for some time. Existing bonds can be bought and sold on the stock exchanges, subject to availability. Contact us for the current position.

The bonds mature after eight years. Early redemption with the RBI is allowed from the fifth year on interest payment dates, and you can sell on the stock exchange at any time if there is a buyer.

The value falls if the gold price falls, so you can lose capital. Bonds bought on the exchange may trade above or below the value of the underlying gold, and trading volumes can be low.

Seven-year savings bonds issued by the Government of India. The interest rate is reset every six months at 0.35% above the National Savings Certificate rate. Read more on our RBI Floating Rate Bonds page.

The minimum is ₹1,000, in multiples of ₹1,000. There is no maximum.

Half-yearly, on 1 January and 1 July, directly to your bank account. There is no option to accumulate interest.

No. The bonds cannot be traded, transferred or pledged. Early redemption is allowed only for senior citizens, after a lock-in that depends on age, and with a penalty.

Investors who can meet the minimum investment set by SEBI — ₹50 lakh for Portfolio Management Services and ₹1 crore for Alternative Investment Funds — and who understand the higher risks involved.

In a PMS the shares are held in your own demat account, the portfolio is usually more concentrated, and fees often include a share of profits. A mutual fund is a pooled, diversified vehicle with lower minimums and daily liquidity.

Often not. Many AIFs are closed-ended with a fixed tenure of several years. Check the private placement memorandum for the lock-in and exit terms before you invest.

Look at the strategy, the team, performance across full market cycles, fees and the disclosure document — not recent returns alone. We share these documents for the providers we work with. Read more on our AIF & PMS page.

Shares of companies that are not yet listed on a stock exchange, usually bought from existing shareholders such as employees or early investors. Read more on our Pre-IPO Investing page.

Availability and indicative prices change frequently. Contact us for the current list.

No. Shares held before the IPO by non-promoters are locked in for six months from the date of allotment in the IPO.

You would need to find a buyer in the unlisted market, which may be difficult or possible only at a lower price. A listing is never assured, which is why unlisted shares are considered high-risk and illiquid.

Gujarat International Finance Tec-City is home to India’s International Financial Services Centre (IFSC), where financial business is conducted in foreign currency under a single regulator, the IFSCA. Read more on our GIFT City Investing page.

Yes, in eligible products, under the RBI’s Liberalised Remittance Scheme and within its annual limit. Tax collected at source may apply to the remittance.

In foreign currency, most commonly US dollars. Your return in rupees therefore depends on the exchange rate as well as on the investment.

It varies widely by product. Many funds are designed for larger investors and have high minimums. We can tell you what is currently available.

It depends on the type of fund and how long you hold it. We would be happy to discuss the applicable tax implications with you; for advice on your own position, please consult a tax adviser.

For resident investors, no tax is deducted on capital gains when you redeem — you report the gain and pay tax when you file your return. TDS applies to redemptions by NRIs, and to dividends above the threshold.

An Equity Linked Savings Scheme is an equity mutual fund with a three-year lock-in. Investments qualify for deduction under Section 80C, up to the overall limit, if you use the old tax regime.

Capital gains statements are available through your investor login, and we can help you obtain a consolidated statement. For advice on your tax position, please consult a tax adviser.